S THANGAMANI Vs. R S T STEELS

JUDGEMENT

(1.) S. Thangamani, proprietor of M/s. Meenakshi Agencies, Melur, the petitioner herein, is the accused in a private complaint filed by the respondent for the offence under section 138 of the Negotiable Instruments Act, 1881. According to the complainant/respondent, the petitioner/accused had dealings with the complainant in purchase of goods on credit. In discharge of the said liability, the accused issued a cheque for Rs. 1, 50, 000 on April 28, 1999. The complainant presented the cheque on October 21, 1999, for encashment. But, the said cheque was returned on November 2, 1999, with the endorsement "insufficiency of funds" and the same was intimated by the bank on November 6, 1999. It is mentioned in the complaint that the cheque in question was issued when the balance due from the accused was Rs. 1, 01, 574 since the excess amount could be for the future purchase. After dishonour, the complainant issued a notice to the accused on November 17, 1999. On receipt of the notice, the petitioner sent a reply admitting the issuance of the cheque, but stating some false allegations. Therefore, the complainant had filed the complaint.

(2.) SEEKING to quash the said proceedings, the petitioner has raised the following ground : "Even according to the complainant, the liability was only Rs. 1, 01, 574, but the cheque was issued for Rs. 1, 50, 000. Therefore, the complaint calling for the entire amount covered in the cheque is illegal and consequently, the cognizance taken by the learned magistrate in respect of the cheque for Rs. 1, 50, 000 is liable to be quashed".